Cities Facing Mass Exodus
In the wake of Covid-19, there is a growing trend of residents and businesses fleeing crowded cities and considering permanent moves to the suburbs.
A recent report revealed that New York City is facing a record number of apartment vacancies, leading to a drop in the cost of rent in the city. The Hartford Courant reported that more than 16,000 New Yorkers switched their residence to Connecticut during the first three months of the pandemic, starting in March. People don't want to be on a crowded subway or in a packed elevator where you can't socially distance.
The Colorado Association of Realtors reported a monthly record of 10,771 single-family home sales in July, which is a 21% increase year-over-year. The record number of home sales across the US is driving median home prices to new highs. The coronavirus pandemic is shaping the housing market by impacting everything from mortgage rates, availability and new desired locations.
Companies across the country have also been adjusting to entire teams working remotely. Many large office buildings are sitting empty with expensive monthly leases. Zoom video calls and other advances in technology are replacing conference rooms and in-person meetings. The shift in the workplace environment has prompted businesses to re-imagine their workspaces for the future. In an era of cost-cutting, corporations could view the slash of office real estate as a business opportunity to save resources.
If you or your business is impacted by this new trend, we encourage you to contact our office at email@example.com or 302.234.5655 to discuss your own financial planning needs.